Air Pollution and Housing Prices across Chinese Cities
Publication: Journal of Urban Planning and Development
Volume 145, Issue 4
Abstract
In recent years, China’s air pollution has drawn worldwide attention and has become a challenge for the Chinese government. Air pollution adversely impacts not only human health, but also property values. Employing the air pollution and housing price data covering 282 prefecture-level cities in China, this article confirms that air pollution has been negatively capitalized into cross-city housing prices. In addition, this article applies the local geographically weighted regression (GWR) model to unveil the spatial variation of air pollution’s capitalization effects on housing prices across different cities. Because air pollution will negatively impact housing prices, considering the benefits of air quality can help the government to create public policies intended to address air pollution, as well as help the public to improve both awareness regarding the environment and willingness to pay for improved air quality. Combing ordinary least squares (OLS) and GWR, this research serves to improve our understanding of air pollution’s capitalization effects on housing prices across Chinese cities.
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Acknowledgments
The author would like to appreciate the anonymous referees for their constructive comments. This research was supported by the National Natural Science Foundation of China (NSFC, No. 71874154) and the Special Fund for the Teaching and Research Development of Liberal Arts Faculty at Zhejiang University.
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Published In
Journal of Urban Planning and Development
Volume 145 • Issue 4 • December 2019
Copyright
©2019 American Society of Civil Engineers.
History
Received: Jul 14, 2017
Accepted: Feb 13, 2019
Published online: Aug 5, 2019
Published in print: Dec 1, 2019
Discussion open until: Jan 5, 2020
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